Johanna Bennett of Barron's wonders: is the once-popular "Dogs of the Dow" investment strategy going to the dogs?

This strategy looks at Dow Jones Industrial Average's works performing stocks and uses it as its shopping list. The Dogs of the Dow, which was successful in 2010 and 2011, is used by funds such as the Hennessy Total Return Fund and the ALPS Sector Dividend Dogs ETF.

Jeffrey Kleintop, chief market strategist at LPL Financial, said in a research note that "the stars may no longer line up for dog stock investors as the calendar turns to September."

He warns that the Fed meeting may affect the market's outlook on high-yield dividend-paying stocks.

This year's Dogs of the Dow stocks include AT&T (T), Verizon (VZ), Merck (MRK), Pfizer (PFE), General Electric (GE), DuPont (DD), Johnson & Johnson (JNJ), Intel (INTC), Procter & Gamble (PG) and Kraft Foods (KFT).

Kleintop suggests to opt for more cyclical securities this month.  

Edited by: HFD


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